THE RELATIONSHIP BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN LATIN AMERICAN COUNTRIES: THE ROLE OF BANKING CRISES AND FINANCIAL LIBERALIZATION

2021 ◽  
pp. 1-26
Author(s):  
ALEJANDRO SANTANA
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Latin American ◽  
Positive Relationship ◽  
Financial Liberalization ◽  
Generalized Method Of Moments ◽  
Banking Crises ◽  
Theoretical Approaches ◽  
The Relationship ◽  
Latin American Countries

This paper examines the effects of banking crises and financial liberalization on the relationship between financial development and economic growth in a panel of 16 Latin American countries over the period 1973-2005. Applying the dynamic panel method that incorporates Generalized Method of Moments system, the main findings show that financial liberalization did not result in a positive relationship between financial development and economic growth due to the emergence and recurrence of banking crises. Our findings also confirm those of theoretical approaches that suggest financial liberalization can generate banking crises, while bringing into question approaches that support a positive relationship between financial development and economic growth.

Financial Development and Economic Growth

2015 ◽  
pp. 233-245
Author(s):  
Filiz Eryılmaz ◽  
Hasan Bakır ◽  
Mehmet Mercan
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
New Zealand ◽  
Financial Development ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
Annual Data ◽  
The Subject ◽  
The Relationship

The relationship between financial development and economic growth has been the subject of considerable debate in development and growth literature. Therefore this chapter provides evidence on the role of financial development in accounting for economic growth in 23 OECD countries (Italy, Japan, Luxemburg, Holland, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, England, USA, Australia, Austria, Belgium, Canada, Denmark, Finland, Turkey, France, Germany, Greece, Iceland) via panel data analysis using the annual data for the period 1980-2012. The authors find a positive relationship between financial development and economic growth for all countries. Also this result means that financial development leads economic growth in these countries. So the results may help policymakers formulate effective financial sector policies as a tool to promote economic growth.

scholarly journals GASTO PÚBLICO Y CRECIMIENTO EN AMÉRICA LATINA: LA LEY DE WAGNER Y LA HIPÓTESIS DE KEYNES

2021 ◽  
Vol 80 (316) ◽  
pp. 109
Author(s):  
Eduardo Ramírez Cedillo ◽  
Francisco López Herrera
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Latin American ◽  
Public Spending ◽  
Short Term ◽  
The Subject ◽  
America Latina ◽  
The Relationship ◽  
Latin American Countries

<p>Se analiza la relación del crecimiento económico con el gasto público de 16 países latinoamericanos de 1990 a 2017. Este trabajo contribuye a la literatura sobre el tema enfocándose en la región. Los resultados de un modelo para paneles cointegrados respaldan la ley de Wagner en el largo plazo y brindan evidencia parcial a favor de las hipótesis de Keynes en el corto plazo.</p><p><strong> </strong></p><p align="center">PUBLIC SPENDING AND GROWTH IN LATIN AMERICA:</p><p align="center">WAGNER´S LAW AND KEYNES’S HYPOTHESIS<strong></strong></p><p align="center"><strong>ABSTRACT</strong></p><p>The relationship between economic growth and public spending in 16 Latin American countries from 1990 to 2017 is analyzed. This paper contributes to the literature on the subject focusing on the region. The results from a model of cointegrated panels support Wagner’s Law in the long term and provides partial evidence in favor of the Keynesian hypotheses in the short term.</p>

The Relationship Between Financial Development, Innovation and Economic Growth

2019 ◽  
pp. 462-479
Author(s):  
Asuman Koc Yurtkur
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
System Development ◽  
Financial System ◽  
Empirical Literature ◽  
Development Economic ◽  
Development Indicators ◽  
Theoretical Approaches ◽  
The Subject ◽  
The Relationship

Along with the globalization process, the relationship between the existence of an advanced financial system, financial development and economic growth has become one of the most debated issues. The financial system, development and development indicators, which play an important role in the overall success levels of the economy, are among the topics to be considered due to this importance. In this study, financial development, economic growth, and theoretical approaches are discussed. Moreover, the fact that the subject is empirically presenting evidence requires examination of this situation with studies in the literature. The presence of the findings obtained empirically, in particular Turkey's economy has made it necessary to include a large empirical literature. The generally accepted financial development indicators, which provide comparability in terms of countries, are examined in terms of financial markets and financial institutions in terms of depth, access, stability and efficiency during the period 2005-2015.

The Relationship Between Economic Structure and Political Violence in Latin America (1990–2019)

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Anna Balestra
Keyword(s):  
Political Violence ◽  
Latin American ◽  
Positive Relationship ◽  
Trade Openness ◽  
Relative Size ◽  
Economic Structure ◽  
Negatively Associated ◽  
The Relationship ◽  
The Empirical Analysis ◽  
Latin American Countries

Abstract This paper provides evidence about the relationship between economic structure and political violence in Latin American countries in the period 1990–2019. The empirical analysis suggests that manufacturing activities are negatively associated with the number of terroristic attacks. On the contrary it exists a positive relationship between mining activities and political violence. A further analysis suggests that the relative size of manufacturing with respect to mining sector is negatively associated to terroristic attacks occurrence. Such relationship becomes stronger when it is associated to high levels of trade openness.

scholarly journals Financial Development, Financial Repression, And Growth In Developing Economies

2011 ◽  
Vol 11 (1) ◽  
pp. 115
Author(s):  
Lillian Kamal
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Financial Development ◽  
Financial Liberalization ◽  
Developing Economies ◽  
Banking System ◽  
Financial Repression ◽  
Overwhelming Evidence ◽  
Geographical Regions ◽  
The Relationship

Many studies have examined the relationship between economic growth and finance. A continuing question is the choice of a clear proxy for financial development. This paper attempts to elucidate this issue from a developing country perspective, while controlling for financial repression. The proxy of choice is the ratio of currency outside the banking system to real output (CB). This proxy is unique in that it is related to the degree of financial repression, and thus relates differently to economic growth depending on the level of financial development. The statistics support the hypothesis of a U-shaped behavior of CB with financial liberalization. The empirical results show that CB relates negatively to growth in countries that are less financially liberalized and positively with growth in countries that are more financially liberalized. The literature has used real interest rates as a measure of financial repression. An innovative measure of financial repression is then proposed that combines the use of currency inside banks and currency outside banks, and is tested concurrently with a broad money depth measure. The study is carried out using a panel approach, and the sample is also divided into different geographical regions, in order to see whether the relationship differs between geographical regions. The study concludes that there is overwhelming evidence that financial repression, which is indicative of financial under-development, is negatively related to growth.

scholarly journals O NON CUMPRIMENTO DA LEI DE GIBRAT EN ECONOMÍAS EN DESENVOLVEMENTO: O CASO DE ECUADOR NO PERÍODO 2000-2013

2018 ◽  
Vol 27 (2) ◽  
pp. 85-98
Author(s):  
Luis Enrique SIMBAÑA-TAIPE ◽  
María Jesús RODRÍGUEZ-GULÍAS ◽  
David RODEIRO-PAZOS
Keyword(s):  
Latin American ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Small Companies ◽  
Age Changes ◽  
Economic Sectors ◽  
Non Linear ◽  
Politica Publica ◽  
The Relationship ◽  
Latin American Countries

Ecuador foi un dos países latinoamericanos que experimentou cambiossignificativos no campo social e económico nas últimas décadas, converténdose nunha daseconomías máis importantes da rexión. Por iso, resulta relevante coñecer as relaciónsexistentes entre o tamaño e a taxa de crecemento das empresas deste país. Este traballorealiza a súa achega ao contrastar a lei de Gibrat cunha mostra de 25.179 empresas detodos os sectores económicos para o período 2000-2013. Aplicamos o métodoxeneralizado dos momentos en dous modelos de crecemento e utilízase como medida decrecemento as vendas e o emprego. As descubertas obtidas indican que as taxas decrecemento das empresas grandes son menores cás das pequenas. Ademais, a idade tenunha relación non linear, xa que namentres que nos seus primeiros anos de vida a relacióné negativa, a determinada idade cambia a positiva. Esta investigación achega evidenciaspara a orientación da política pública en países que se atopan en desenvolvemento.  Abstract: Ecuador is of the Latin American countries experiencing significant changes inthe social and economic field in recent decades, becoming one of the most importanteconomies in the region. Therefore, it is relevant to know the existing relationshipsbetween the size and growth of companies in this country. This study accomplishes this bycontrasting Gibrat's law in a sample of 25,179 companies from all economic sectors for theperiod 2000-2013. We apply the generalized method of moments in two growth modelsand it is used as a measure of growth regarding both sales and employment. Findingsshow that the growth rates of large companies are lower than those of small companies. Inaddition, age has a non-linear relationship, while in the first years of life the relationship isnegative, at a certain age changes to positive. This research provides evidence for theorientation of public policies in developing countries.

Charismatic, Pentecostal, and Evangelical Movements in Europe, the US, and Brazil

2017 ◽  
Author(s):  
Detlef Pollack ◽  
Gergely Rosta
Keyword(s):  
Latin American ◽  
Social Deprivation ◽  
Religious Change ◽  
Evangelical Protestantism ◽  
Secularization Theory ◽  
Explanatory Factors ◽  
Theoretical Approaches ◽  
Healing Rituals ◽  
The Us ◽  
Latin American Countries

The growth of Evangelical Protestantism and Pentecostalism is widely regarded as a potent argument against the validity of secularization theory. To explain this growth, Chapter 12 draws on theoretical approaches to analysing new social movements, which allows an expansion of the repertoire of explanations concerning religious change and a testing of alternatives to the models provided by secularization theory. To explain the worldwide growth and relative resilience of the Evangelical and Pentecostal movements, the chapter identifies a number of conditions and explanatory factors: cultural and social confirmation, religious syncretism, social deprivation, and the widespread magical worldview and broadly accepted spiritistic beliefs in Latin American countries that are conducive to the acceptance of Pentecostal experiences and healing rituals.

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